A strong argument for having a central bank that is independent from government operations is that the central bank should not be under political pressure to increase the money supply, which would give monetary policy an inflationary bias.

Question

Quizplus · Accepted Answer

When a central bank is independent, it is free from political pressure to increase the money supply, which can prevent an inflationary bias in monetary policy. This helps to maintain price stability and support economic growth over the long term.

A Strong Argument for Having a Central Bank That Is